The scopes of this report are the following: we want to understand more about IKEA's strategies in the furniture retail market. When it comes to brand auditing, several questions should be examined and assessed. These questions are: How well is the business' current brand strategy working? What are the company's strengths and weaknesses? What are its external opportunities and threats? How competitive are the business prices and costs? How strong is the business' competitive position in comparison to its competitors and finally, what strategic issues are the business facing?
IKEA is a china based franchise of household furniture stores. The IKEA began its operations in 1926. The founder Ingvar Kamprad was born in Småland in southern Sweden. In the 40's, he developed IKEA as a furniture retail store. This period explored furniture designs, self assembly, advertising, the use of a catalog and showroom to reach people. In the 60's, the IKEA concept started to take shape. New IKEA stores opened and “hero products” were developed such as POÄNG and BILLY bookcase. The owner and franchiser of the IKEA system is based in the Netherlands. Their business motto is: "We shall offer a wide range of well-designed, functional furnished home products at low price that as many people as possible will be able to afford them."
[...] The brand name itself, to show how it became favorable, is given to children in America. Brand Association: Brand association means that the brand is associated with a certain product. IKEA's brand association would be for a special kind of furniture: the flat pack. In every apartment you will ever go, there will be normal furniture, things that have to come from the window because it is too big for the doors, and there will be IKEA. IKEA can be the king size bed that you brought back from the warehouse with a 5 doors car, or the entire kitchen that you put together in a couple of hours. [...]
[...] When consumers need furniture for their house, they go to IKEA, without really thinking about anywhere else. Consumers that come to IKEA are usually middle class consumers, from your first apartment to 50 year olds. Brand Inventory: Comprehensive Profile: Suggested Bases for Positioning the Brand: Insights to how Brand Equity may be better Managed: Assesses Consistency: Brand Exploratory: Brand Awareness: IKEA has obtained, after so many years of existence, a cult status. IKEA is not just a shop, it is a real experience. [...]
[...] When the consumer sees an IKEA, they know that they will be able to buy what they are looking for, at a very affordable price, especially in these times of economic crises. The company also offers a lot of different promotions and offers on different products, placed at strategic places in the shop. IKEA is open every day and is often a place where families go on Sundays to change their homes or add things. Kids can play in the IKEA playgrounds while the parents follow the path through the entire warehouse. [...]
[...] Brand Image: - IKEA has a very strong image in customers' minds. We also noticed that when asked if they knew furniture shops, customers instantly said IKEA, then paused for a couple of seconds before answering by another name like Fly for example. The brand is also a very favorable. IKEA satisfies every needs and wants of customers by offering a wide range of products and has a unique brand association as explained above. Strategic Brand Management Recommendations: IKEA should probably, in the long term, create an electronic catalogue. [...]
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